This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Market Commentary:
From November14th to November 20th interest rates remained relatively stable, with the federal funds effective rate holding around 3.87% to 3.88%,and mortgage rates showing a slight decline. Rates were among the lowest seen in 2025, offering some relief to borrowers amid persistent inflation pressures. A stable rate environment with modest mortgage relief is encouraging for borrowers to act while affordability improves.
Members of the Federal Reserve’s policy-setting committee expressed “strongly differing views” over whether to cut interest rates next month, according to minutes of the central bank’s October meeting.
The Fed’s decision has been further complicated by the recent government shutdown, which delayed the release of critical reports used to gauge the health of the economy, prompting some policymakers to call for a more cautious approach until a clearer picture emerges.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 11/20/2025 – 12:00PM EST):
Housing Market Set for a 2026 Comeback, NAR Predicts:
U.S. Home Prices Rose 0.3% in October:
Buyer Satisfaction Among New Homeowners Is Growing, but This Generation Feels the Most Remorse:
The Housing Affordability Crisis Is Accelerating Fastest in Rural America:
Class Concern:
The share of the US population that describes themselves as middle class has slid from a very solid 85% a decade ago to just 54% today. Relatedly, the percentage that now consider themselves lower or working class is over 40%. This suggests that a very large and growing section of society no longer sees themselves as upwardly mobile and sees the finer things as increasingly out of reach. Quite troubling. - Elliot Eisenberg, Economist
News You Can Use:
• Housing numbers point to strong buyer's market.
• Home Prices Keep Rising: 10 Markets Seeing the Sharpest Increases
• Jobs report September 2025: 119,000 added, jobless rate 4.4%
• US weekly jobless claims fall; continuing claims increase | Reuters
• https://www.calculatedriskblog.com/2025/11/california-october-home-sales-highest.html
• Home Prices Post Biggest Gain in 7 Months Despite Slow Demand
• Real Estate Firms Expect Stable Profitability at Year’s End, Despite Market Challenges
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 11/20/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to
property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 11/20/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed by the NJ Department of Banking and Insurance. Licensed Mortgage Banker-NYS Department of Financial Services. Also licensed in AK, AL, AR, AZ, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV and WY. NMLS ID #75164 (For licensing information go to: NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)
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